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hi I need help with the mathematical steps of this. this is a hint chart so I'm assuming my math needs to match up 1.
hi I need help with the mathematical steps of this. this is a hint chart so I'm assuming my math needs to match up
1. You are seeking a 30 year ARM loan of $250,000 which will charge 2 points. You will also incur $1500 in other third party closing costs related to this loan. Assuming you keep this loan for 4 years, what are your CF's, the yield to lender and cost to borrower (expressed as APRs)? What do you pay each year in interest? Initial rate 2.75% Annual adjustments Tbill + 2.0% (rounded to 1/8%) No payment or interest rate caps Tbill Index, now at 2.21, then changes annually to: 3.23, 6.12, 7.76 Year Index EOY Balance N 2.21 3.23 6.12 7.76 Int. Rate Charged 2.750 5.250 8.125 9.750 Monthly Payment 1020.60 1369.78 1819.38 2089.89 Amount Paid to Interest 6806.77 12751.53 19484.85 23172.60 244559.57 240873.74 238526.03 236619.95 1. You are seeking a 30 year ARM loan of $250,000 which will charge 2 points. You will also incur $1500 in other third party closing costs related to this loan. Assuming you keep this loan for 4 years, what are your CF's, the yield to lender and cost to borrower (expressed as APRs)? What do you pay each year in interest? Initial rate 2.75% Annual adjustments Tbill + 2.0% (rounded to 1/8%) No payment or interest rate caps Tbill Index, now at 2.21, then changes annually to: 3.23, 6.12, 7.76 Year Index EOY Balance N 2.21 3.23 6.12 7.76 Int. Rate Charged 2.750 5.250 8.125 9.750 Monthly Payment 1020.60 1369.78 1819.38 2089.89 Amount Paid to Interest 6806.77 12751.53 19484.85 23172.60 244559.57 240873.74 238526.03 236619.95Step by Step Solution
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